Account Classification Involves Categorizing Cost Accounts As

question 42

Multiple Choice

Account classification involves categorizing cost accounts as:

• A)Product costs and administrative costs.
• B)Contribution costs and product costs.
• C)Variable costs and fixed costs.
• D)Variable costs and product costs.
• E)Fixed costs from product costs.

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Definitions:

Back-end Load

A fee paid by an investor when shares are sold, typically used in mutual funds, where the fee decreases over time the investment is held.

Annual Fees

Refers to the yearly charges associated with having an account, typically found in credit cards or investment accounts, to cover account management services.

12b-1 Fees

These are annual fees charged by a mutual fund to cover marketing, distribution, and sometimes administrative expenses, directly reducing the fund's return to its investors.

Management Expenses

These are fees paid out of fund assets to the fund manager for investment management and operational services, including administrative and overhead costs.